Chipper raises $5.6 million to eliminate student loan debt

Chipper raises $5.6 million to eliminate student loan debt

By Edlyn Cardoza

March 14, 2022

  • Crusher
  • Chipper Rewards
  • Financial health

Chipper, the app that helps student borrowers reduce debt faster, recently announced that it has received a seed investment of $5.6 million. The round was led by Freestyle Capital, Slauson & Co. and Propel Venture. Backers also include investors from the Cap Table Coalition and FinTech executives Ethan Bloch of Digit, Loop founder John Henry and Craig Lewis of Gig Wage.

With this investment, Chipper expects to rapidly grow its existing user base of over 80,000 users, as over 45 million people will return for redemption in May. Funds are being allocated toward lifting the moratorium through team growth, marketing and product expansion, including launching new programs like Chipper Rewards. Chipper is on its way to become a go-to app for repaying student loans by accelerating its capabilities and offering comprehensive solutions to its users.

“As a first-generation high school and college graduate who has experienced the hardships of conquering student debt, I wanted to create a simple solution for all student borrowers to manage their debt and take a realistic path to freedom. financial,” said Tony Aguilar, Founder and CEO of Chipper. “With this new round of funding and payments resuming in May, we know 2022 will be a big year for Chipper. This funding will allow us to expand our user base and help borrowers through their student loan journey from start to finish. »

Launched in 2020, Chipper empowers student borrowers to improve their financial health by providing seamless, transparent student loan repayment solutions and is the only student loan app to support borrowers every step of the way. Chipper saves users an average of $309/month and has helped qualified applicants receive a total of $81 million in forgiveness since launch. The company is growing 40% month-over-month, demonstrating its unique position in the student loan space.

Chipper’s earnings are earned through a tiered membership program, and it’s completely free to sync your servicer loans and explore forgiveness and repayment options. Users can register with Chipper+ for additional support, automatic enrollment in forgiveness or refund programs, and access to roundups for $4/mo. Users can also access the roundup service on their own for $2/month. For now, all Chipper services are free until the loan moratorium is lifted on May 1, as borrowers are not making payments.

“This round of funding is more than an investment in our product and our team; this is personal to me as a Latino founder as we work to bridge the gap on both sides of the table when it comes to venture capital. As we climb, we must take others with us where we can. We started Chipper with a mission to help those hardest hit by student debt – people of color. I am thrilled to partner with the Cap Table Coalition and pledge over 25% of this round to various investors,” said Aguilar.

“This new funding round positions Chipper for significant growth over the coming year,” said Austin Clements, Managing Partner at Slauson & Co. “We believe Chipper is revolutionizing the way people approach the difficult and confusing student loan process, making it digestible and much more accessible to the millions of people who need it. We are proud that this joint investment allows Chipper to chart new paths for expansion and product development, contributing to its greater mission of helping millions of graduates struggling with student debt, especially those from color and women. Slauson & Co. looks forward to what Tony and Chipper will accomplish with this new investment.

There is a divide in the venture capital community, with only 3% of venture capitalists being black or Latinx, and only 1.1% of all private funds having black, Latinx or female managers. The Cap Table Coalition is an organization of high-growth startups, venture capitalists, and emerging fund managers working to close the racial wealth gap. The Cap Table Coalition offers companies a simple way to increase their representation and funding in the venture capital ecosystem. High-growth startups looking to get involved can commit to allocating 10% of their funding rounds to the organization to distribute to Black, Latinx, and other underrepresented investors. Chipper takes this commitment one step further and contributes 25% of the company’s fundraising to the coalition.

“This funding round is a great example of what can be achieved if we bring together founders and diverse investor groups looking to transform the venture capital landscape,” said Elizabeth Grier at the Cap Table Coalition. “These investors envision the future of venture capital — and technology as a whole — as one that includes the great minds of all gender groups, all ethnicities, and all walks of life.”

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